Leticia Gonzales

Despite prospects for brief upswings in natural gas demand, an overwhelming bearish sentiment continued to weigh on forward prices this week as recent mild spring temperatures throughout much of the country were seen lasting at least through the early part of May. May prices fell an average 7 cents from April 17-24, while June and the balance of summer strip (May-October) each lost an average 8 cents, according to NGI’s Forward Look.

Subtle changes in daily weather models finally caught the attention of traders as natural gas futures staged a rally on Thursday that pushed the prompt month back above $2.50 despite fresh storage data that reflected a year/year surplus in inventories. The May Nymex gas futures contract jumped 5.2 cents to settle at $2.514/MMBtu, while June climbed 4.8 cents to $2.548.

Subtle changes in daily weather models finally caught the attention of traders as natural gas futures staged a rally on Thursday that pushed the prompt month back above $2.50 despite fresh storage data that reflected a year/year surplus in inventories. The May Nymex gas futures contract jumped 5.2 cents to settle at $2.514/MMBtu, while June climbed 4.8 cents to $2.548.

Weather models continued to add back some demand for the next couple of weeks, driving natural gas futures marginally higher Wednesday as the market begins to move beyond a month-long period of massive year/year weather differences that were seen pushing storage inventories to a surplus over last year’s levels. The May Nymex gas futures contract settled seven-tenths of a cent higher at $2.462/MMBtu, while June rose 0.1 cents to $2.50.

Weather models continued to add back some demand for the next couple of weeks, driving natural gas futures marginally higher Wednesday as the market begins to move beyond a month-long period of massive year/year weather differences that were seen pushing storage inventories to a surplus over last year’s levels. The May Nymex gas futures contract settled seven-tenths of a cent higher at $2.462/MMBtu, while June rose 0.1 cents to $2.50.

Perhaps more than ever, all eyes will be on the South Central region for natural gas markets this summer as robust associated production from oil wells and a projected doubling of natural gas exports will propel the market into uncharted waters. Factor in the need to refill historically low storage inventories and the potential for a major storm to hit the Gulf Coast, and the market is ripe for significant — though likely brief — price volatility.

One day after cooler trends in weather models helped boost natural gas futures by a few pennies, bears attempted to reclaim control by quickly reversing those gains amid shifting forecasts and a significant drop in flows to a Gulf Coast liquefied natural gas (LNG) facility. The May Nymex gas futures contract settled Tuesday at $2.455/MMBtu, down 6.9 cents. June lost 5.9 cents to hit $2.499.

One day after cooler trends in weather models helped boost natural gas futures by a few pennies, bears attempted to reclaim control by quickly reversing those gains amid shifting forecasts and a significant drop in flows to a Gulf Coast liquefied natural gas (LNG) facility. The May Nymex gas futures contract settled Tuesday at $2.455/MMBtu, down 6.9 cents. June lost 5.9 cents to hit $2.499.

In a move that could be considered risky given the long Easter holiday weekend, natural gas traders continued to grind futures prices lower on Thursday, pushing the prompt month to a multi-year low. The May Nymex gas futures contract settled at $2.49, down 2.7 cents on the day. June slipped 2.4 cents to $2.535.